Comment

Comment by Al Cramblett on October 14, 2014 at 10:06am

I recently read an article published by the Ohio Farm Bureau which discussed the importance of estate planning for one who has signed a minerals lease. It is my opinion that if one owns 100 acres or more in the shale plays of eastern Ohio ignoring estate planning will significantly impact the amount of taxes that one ends up paying. There are many issues to be considered. One of the more important is getting a VALUATION of your property before production begins. I personally have done this. An individual that is quite qualified in doing a minerals valuation is Timothy Knoblock (phone: 740-379-9522; email: tknoblock@kpcinc.com). I'd suggest contacting Tim preferably by e-mail to get further detail on this topic.

Comment by Jon Chamberlain on June 20, 2014 at 11:02am

Kathleen, when you say the Andrullis well was connected, do you mean it started producing?  Which line is the Anrullis well connected to?

Comment by Kelly Young on June 20, 2014 at 8:07am

I am on the Dye well, south unit. Was told it was in production in March and that we would get our first royalty check in July for the first 3 months of production and then monthly thereafter. What is the division order?

Comment by TJT on June 19, 2014 at 9:46pm

Interesting and thanks. I'm on the Millport line. Waiting like everybody else. 

Comment by Kathleen on June 19, 2014 at 7:39pm

TJT,
I know you were talking to Kelly, but I received my division orders well over a year ago and my well (Andrullis) was connected a few months ago, with no royalities yet.
I have a feeling division orders and production do not follow a certain pattern, yet.

Comment by TJT on June 19, 2014 at 6:06pm

Kelly, when did you get the division order? How long was it between your well going into production and the division order showing up? The info would be greatly appreciated.

Comment by Inchworm antenna on June 19, 2014 at 4:39pm

I wonder how royalty deductions would look on a Net royalty lease that also has a market enhancement clause

Comment by Kathleen on June 19, 2014 at 4:35pm

Those royalties I listed are from a 15% net lease.

Comment by Inchworm antenna on June 19, 2014 at 2:18pm

Folks need to pay very close attention to the market enhancement which might appear to bring more value to the lessor, but many in PA claim is a blind sided attempt to take steep deductions on gross leases. And then there's also the issue of a company or two taking outrageous deductions on Net leases, and how certain companies structure those deductions to where some landowners complained the deductions were almost as much as the actual royalty leaving them with little to nothing.  (like selling to a sister company that charges higher than usual fees, and transferring the fees in deduction form to the lessor).  Looks like folks in PA have even begun to organize against some of those practices and have included their political leaders.  Even the PA Governor has specifically weighed in.  If the same issues are beginning to surface here in Ohio it would be great if people speak up.  Then again maybe the production on the wells commented about are just not very lucrative.

Comment by Kelly Young on June 19, 2014 at 1:45pm

They would be from Chesapeake. As for your other questions, I have no idea. We have yet to receive royalties. Next month is the first month we are supposed to get them.

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